It depends. Most private colleges will require first-year students to do on-campus housing (and will only allow local area students to commute). After year one, schools will generally give students the freedom to choose between off-campus and on-campus housing.

Talk to your prospective schools' admissions department and figure out their options. If you are worried about living on-campus, then I would say "Don't be!" Living on-campus is part of the first-year experience. To really understand college life, you cannot live at home and drive back and forth.

Some colleges, yes. Some colleges, no.